MSE News: Couples now able to register to shift tax allowance between spouses

polymaff

Do you really mean that the tax code now allocated to the pension provider, times 10, is greater than the gross pension? Sounds crazy, but you need to tell us the gross make-up of your income.

wellused

Let’s say my annual pension is £8000/year so £8000 of my tax allowance goes to my pension so no tax is paid, the remainder of the tax code goes to my weekly employment so I pay tax on that, my concern is that the £1100 from my wife’s allowance has been added to the pension code and not to my employment code as I expected it have been.

paulkamula

Hi all,
We recently applied for this, my husband got a nice cheque for £ 212. an adjustment in his tax code. However
my first wage packet after the claim I was shocked to find that I have went from being a non tax payer to paying £110. monthly. What went wrong ? ? we would have been better off not applying. any ideas ?

polymaff

paulkamula wrote: »

Hi all,
We recently applied for this, my husband got a nice cheque for £ 212. an adjustment in his tax code. However
my first wage packet after the claim I was shocked to find that I have went from being a non tax payer to paying £110. monthly. What went wrong ? ? we would have been better off not applying. any ideas ?

Is your expected income this tax year more than £11,000 and/or was your income last tax year more than £10,600? What is your latest PAYE tax code?

olliedog

Do you have to re-apply every year for them to transfer the allowance?

p00hsticks

olliedog wrote: »

Do you have to re-apply every year for them to transfer the allowance?

No, my understanding is that it automatically continues until either you ask for it to stop or HMRC decide that it is no longer applicable for one reason or another (e.g. one person becomes a higher rate tax payer).

GillyFlower

May I just add a quick question here rather than start a new thread.

We are both retired and my husband has just received his 2015-2016 Annual Tax Summary. I may be being a bit 'slow' this morning - but

I applied for my husband to receive the Marriage Allowance. Below copied form Summary

Your income before tax = £11681.58
2015-2016 Tax Free = £10600.00
Marriage Allowance = £1060.00
Less your total tax free amount for 2015-16 = £11660.00
You pay tax on £21.58

Your tax was calculated as -
Basic rate income tax £20 at 20% = £4.00
Total Income Tax £8.00
Your income after Income Tax = £11673.58

How can you pay tax on £21.58 and it becomes £8.00?

Thank you

polymaff

GillyFlower wrote: »

May I just add a quick question here rather than start a new thread.

We are both retired and my husband has just received his 2015-2016 Annual Tax Summary. I may be being a bit 'slow' this morning - but

I applied for my husband to receive the Marriage Allowance. Below copied form Summary

Your income before tax = £11681.58
2015-2016 Tax Free = £10600.00
Marriage Allowance = £1060.00
Less your total tax free amount for 2015-16 = £11660.00
You pay tax on £21.58

Your tax was calculated as -
Basic rate income tax £20 at 20% = £4.00
Total Income Tax £8.00
Your income after Income Tax = £11673.58

How can you pay tax on £21.58 and it becomes £8.00?

Thank you

This sort of creative arithmetic has been reported quite a few times recently by professional accountants. A response by HMRC is still awaited.

It may well be an HMRC attempt to get you to make involuntary payments on account - but don't quote me. ::rotfl:

hafo

good job thanks

Dazed_and_confused

GillyFlower

The Annual Tax Summary is really a political document and is not intended to be your annual tax calculation

If this was necessary HMRC would send you a tax return or P800 calculation.

As to your question did hubby pay £8 in tax last year - has he checked his P60(s)?

Is it possible he should have paid £4 but actually paid £8?